Investors bid $2 billion for Sydney Morning Herald publisher

Two big U.S. investors are locked in a $2 billion tussle for control of Australia's troubled Fairfax Media.

Hellman & Friedman on Thursday offered up to 2.9 billion Australian dollars ($2.1 billion) for Fairfax, which publishes the Sydney Morning Herald and the Australian Financial Review.

The offer values the 186-year old company's shares at between 1.225 and 1.25 Australian dollars each, and is higher than a rival bid from a consortium of investors including TPG and the Ontario Teachers' Pension Plan.

Sydney-based Fairfax said it would ask both groups to do due diligence on the company ahead of a potential deal.

Hellman & Friedman has previously invested in Axel Springer, the German publisher that owns Business Insider. The private equity firm is bringing more than financial clout to the table -- its chairman emeritus is former Fairfax chairman Brian Powers.